CO2 Merger
Dry-Ice is the patented trade name of the product of Dryice Corp. It has become the popular name for the products of its competitors as well. Dry-Ice is solid carbon dioxide, an efficient refrigerant. Last week Dryice Corp., pioneer in the field and largely owned by Capitalist August Heckscher, merged with its old rival Solid Carbonic Co., a concern closely affiliated with the du Pont interests. Although the merged companies will control more than half of the industry's capacity, they will not lack formidable competition Much of it will come from powerful-privately-held Michigan Alkali Co., a rich concern belonging chiefly to John Ford of Detroit (Libbey-Owens-Ford Glass Co.) and making its solid CO2 under Belgian Patents.
Great were the hopes for Dry-Ice when the company was first launched. Its patents, however, were not impregnable and competitors arose. Now the entire solid C02 industry, still small, not profitable, is facing a climax.
At present some 14 million tons of water ice are used annually in shipping foods. About 180,000 refrigerator cars costing $3,500 each (against $5,000 for a 2 car) are only a part of the railroad industry's great investment in ice facilities. To be as successful as its sponsors hope, 2 would have to replace all this, also oust mechanical refrigerators.
The present outcome hinges largely on cost. In 1929 2 cost 5-c- a lb., or $100 a ton against $4 for ice. Although solid
2 is twice as cooling and cheaper to handle, it could not overcome the 25-1 water-ice advantage. During the last few years solid 2 has dropped steadily in price, sold recently at 3-c- with some large users obtaining it at 2-2 1/2-c-. One large maker says it will drop to 1 1/2-c- by summer. At 2-c-, or $40 a ton, the CO2 men think their product can compete with water-ice. In addition to being twice as cooling, solid CO2 leaves a blanket of gas which insulates against heat for so long a time as to make it as a whole nearly ten times as efficient as water-ice. Thus at present prices the CO2 industry hopes to have its real opportunity to supplant water-ice in refrigerating carload lots. But whether it can make money at present prices is a question chemists ponder.
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